Orange and Vodafone iPhone: Price War and Network Quality

The Apple iPhone has been around for almost two years now and in that time, O2 in the UK have enjoyed exclusivity of the handset. We recently learned that Orange as well as Vodafone would now be able to offer the iPhone to their customers; this has since promoted hopes of a price war.

Future iPhone customers have been holding off purchasing the Smartphone in the hope of a UK price war, but it looks as though a price cut will not come. Times Online have been speaking to Andrew Harrison, CEO of Carphone Warehouse’s UK operation.

Harrison said, “I am not convinced there will be a price war. That is a game that only leads in one direction and that is all of them losing. This battle will be fought on other fronts.” So what are the fronts that Harrison is talking about.

Times Online explains that a number of O2 iPhone customers are unhappy with the networks performance, especially the 3G coverage. Orange is known for having a better 3G network; this has prompted more than 125,000 to pre-register with Orange for the iPhone.

O2 will have to do something to improve its network coverage, otherwise they will find that most of their iPhone customers will jump ship and sail over to Orange and Vodafone.

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